Analyst Note| Karen Andersen, CFA |
We're raising our fair value estimate to $620 per share from $570 after reverting back to our prior 14% long-term tax rate assumption. We had previously raised our tax-rate assumption to 20%, to incorporate the potential for a 26% U.S. statutory tax rate beginning in 2022 with the passage of the Build Back Better Act. We now assume that the U.S. corporate tax rate will remain at 21% for the remainder of President Biden's first term, ending in early 2025, as the BBBA has stalled in the Senate. We continue to see the firm's narrow moat driven by its dominant Eylea franchise, growing franchise for immunology drug Dupixent, as well as strong prospects for oncology drug Libtayo and supporting pipeline.